What exactly is happening here?

Starting today, TCS will face a jury at US District Court, Northern District of California (Oakland), over ‘racial discrimination’ suit filed by terminated American employees.

As per the lawsuit filed, if an employee at TCS’ US based office is an American, then he or she has 13-times more chance to get fires, compared to a South Asian or indirectly, Indian.

The complaint states that since 2011, TCS has fired 12.6% of non South Asians, compared to just 1% of South Asians.

Who Has Filed This Case?

1000 non-South Asians, who are dominantly Americans, have filed a case at California court, arguing that TCS indulged in a “systematic pattern and practice of discrimination” against them.

They argue that right now, 80% of TCS employees in the US are South Asians. On the contrary, South Asians comprise of 12% overall, in the IT industry inside the US.

The logic of the complaint is simple: TCS fires American employees, and then hire h-1B visa ready Indian employee for a far-less pay package. Thereby saving money.

Now, the Jury will decide whether this is ‘racial discrimination’ or not.

Right now, TCS employes around 4 lakh employees all over the world.

What Can Be The Damages?

In case TCS is convicted of violating U.S. civil rights laws, then the scale of damage can be immense. The Judge may pronounce the verdict based on the valuation of the company, which is $100 billion at present, and its revenues, which was $19 billion for the fiscal ending March, 2018.

And since President Trump is pressing for ‘Hire Americans’ vision, this case can prove to be a benchmark for entire Judicial system.

TCS Responds

TCS has said that they are following all Federal and State Laws.

In a statement, TCS said, “Our success is based on our ability to provide the best talent available, both in the US and globally, based purely on the individual’s specialized experience, skills and fit for each client’s specific needs. TCS also strictly adheres to all federal and state equal employment opportunity laws and regulations.”

Mohul keenly observes the nuances of Indian startup world; and tries to demystify the secrets behind Technology, Marketing, Mobile and Internet. He is a Writer by passion, Marketer by choice and Entrepreneur by compulsion. Follow him on Twitter here: @_mohul